The part that says business portion only is not part of the equation for you since the entire property was always used for business.
Also, are you entering this in the rental section instead of the home sale section? It belongs in the rental section
To calculate the ratio you can look at your property tax statement. Say your property tax statement shows your total assessed value is $100,000 with the improvements valued at $75,000 and the land at $25,000. You would then allocate 75% to assets and improvements and 25% to the land.
If you had no selling expenses you would leave this blank.
So if you sold the property for $130,000 with the above scenario, the asset sales price would be $97,500 while the land price would be $32,500.
To enter the sale of your rental click the following:
- Federal
- Income and Expenses
- Show more next to Rentals, Royalties and Farm
- Start next to Farm Income and Farm Rental
- follow the steps until you can answer that you sold the property
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